There is an EU wide VAT change that is coming into effect from 1st January 2015. From that date ALL businesses who supply digital services to consumers from another member state MUST charge VAT at the VAT rate effective in the consumers member state. The current UK VAT threshold of £81K is irrelevant; if you supply digital services to other EU consumers then you will need to register for VAT. To save registering in all the different EU countries there is a mechanism for completing one return for HMRC, who will distribute the VAT to the various different countries. Records need to be suitably detailed to split income be country, and evidence to support the location of customers has to be kept. Penalties may be issued from other EU tax authorities.